The Competition Appellate Tribunal (CAT) has upheld the order of the Competition Commission of Pakistan against the Pakistan Flour Mills.
The Competition Appellate Tribunal has upheld the Competition Commission of Pakistan’s ruling against the Pakistan Flour Mills Association (PFMA) for fixing wheat flour prices in violation of Section 4 of the Competition Act, 2010.
In its decision, the Tribunal ordered PFMA to pay a reduced fine of Rs35 million into the national exchequer, according to a press release issued on Tuesday.
The CCP had initiated an inquiry after several news reports pointed to an unusual surge in wheat flour prices nationwide.
The investigation concluded that PFMA was engaged in anti-competitive practices. PFMA later appealed the CCP’s decision before the Tribunal.
During the hearing, CCP’s counsel emphasized that Sections 4(1) and 4(2)(a) of the Competition Act prohibit agreements or decisions among businesses, including associations, to fix prices.
The Commission argued that PFMA’s repeated and structured issuance of price instructions compromised the commercial independence of individual mills, effectively forming a horizontal agreement with anti-competitive intent.
After reviewing the evidence and arguments from both sides, the Tribunal upheld the CCP’s findings but decided to lower the penalty to Rs35 million.
